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Gilead Turns Tax-Supported Tax-Evader with Hep C Patent in Ireland, Says AHF



  Gilead Turns Tax-Supported Tax-Evader with Hep C Patent in Ireland, Says AHF

    U.S.-based drug company Gilead Sciences has filed a patent for its new
 Hepatitis C drug compound in Ireland (according to the Wall Street Journal)
 where income on patent royalties is exempt; The move is an attempt to avoid
  paying U.S. taxes, while enjoying the taxpayer-funded research that makes
                      their business possible, says AHF

Business Wire

LOS ANGELES -- February 20, 2013

AIDS Healthcare Foundation (AHF), the largest global AIDS organization, today
blasted U.S.-based drug company Gilead Sciences Inc. calling the company a
“tax-supported tax-evader” after Gilead recently told investors that the
intellectual property for a key compound in its new hepatitis C drug is
“domiciled in Ireland.” Because income derived from patent royalties is
tax-exempt in Ireland, this move could mean an additional $500 million a year
in profit as the drug—which is not yet approved—is expected to be one of the
world's top-selling medicines. Analysts are forecasting that sales worldwide
could be as much as $7 billion a year.

According to the Wall Street Journal (“A New Rx for Tax Bills,” by Jonathan D.
Rockoff, February 6, 2013): “…Gilead Chief Financial Officer Robin Washington
said during an earnings call Monday that the intellectual property for its
hepatitis C compound ‘is domiciled in Ireland’. Ms. Washington didn't go into
further detail, and a Gilead spokeswoman declined further comment. Gilead
estimates its tax rate for 2013 to be 26% to 28%, using ‘non-GAAP’ measures
that don't conform to generally accepted accounting principles. By shifting
revenue on the compound to Ireland, Gilead could cut its overall tax rate to
21% or 22%....”

“It seems the greed of Gilead’s leaders knows no bounds, as they scheme to
line their own pockets by evading U.S. taxes – all while enjoying the
taxpayer-funded research that makes their business possible,” said AHF
President Michael Weinstein. “Though unconscionable, this latest move should
come as no surprise as Gilead has continually pursued prices hikes and
exploited patent loopholes to maximize earnings on its lifesaving HIV/AIDS
drugs. How? By charging government-funded programs—such as the AIDS Drug
Assistance Program—exorbitantly high prices that limit access to their
lifesaving medicines while making Gilead executives rich at taxpayer expense.”

For more information about Gilead’s history of HIV/AIDS price hikes and patent
maneuvers, please see: Gilead Q4 earnings marks year of greed and price hikes.

About AIDS Healthcare Foundation

AIDS Healthcare Foundation (AHF), the largest global AIDS organization,
currently provides medical care and/or services to nearly 200,000 individuals
in 28 countries worldwide in the US, Africa, Latin America/Caribbean, the
Asia/Pacific Region and Eastern Europe. To learn more about AHF, please visit
our website: www.aidshealth.org, find us on Facebook:
www.facebook.com/aidshealth and follow us on Twitter: @AIDSHealthcare

Contact:

AIDS Healthcare Foundation
Lori Yeghiayan Friedman
Telephone: (323) 308-1834
Mobile: (323) 377-4312
loriy@aidshealth.org
or
Ged Kenslea
Telephone: (323) 308-1833
Mobile: (323) 791-5526
gedk@aidshealth.org
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